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Industrial Disputes Act

Labour Laws: Situational Problems

Situational Problem 01:

Workers resorted to strike in public utility services industry in which some of them resorted to violent demonstrations, acted in defiance of law and order and there were others who were merely silent spectators. The strike was declared illegal.

  • Can punishment of dismissal or termination be imposed on all workmen or only on those who fomented illegal strike and did act detrimental to the maintenance of law and order?
  • Can a joint charge-sheet be given to all workmen or only individual charge-sheet be given to some of them?

Solution:

  • Yes, the punishment of dismissal or termination be imposed on all workmen who fomented illegal strike in a public utility service in breach of contract without giving notice of strike to the employer within six weeks before striking (Section 22 of the Industrial Disputes Act, 1947).
  • No, a joint charge-sheet cannot be given to all workmen but charge sheet can be given to only individual who took part in illegal strike. Under Section 35 of the Industrial Disputes Act, 1947, persons who refuses to take part or to continue to take part in any strike or lock- out which is illegal under this Ac, cannot be made subject to expulsion or to any fine or penalty compared with other members of the union. Thus the charge sheet may be given to those who are liable for punishment in respect to illegal strike. notwithstanding.

Situational Problem 02:

The workman of Annasaheb Patil Sugar Factory was employed during crushing season only and consequent to closure of season they ceased to work.

  • Is it retrenchment? Give reasons.
  • What is the difference between closure and retrenchment?

Solution:

  • The information in the problem suggests that it is seasonal employment and it is assumed that the employment will cease after the completion of season. Hence it is not retrenchment.
  • The difference between closure and retrenchment is as follows:
  • Closure means the permanent closing down of a place of employment or part thereof, while in retrenchment, the employer lessens over-burdened employees under circumstances, viz. Government policies, loss in some departments, etc.
  • Closure affects all the employees, while retrenchment affects some of the workmen.
  • In closure business is terminated permanently, while in retrenchment business goes on uninterrupted.

Situational Problem 03:

Union in an industrial establishment has 60 % of total workmen as its members since last 10 months. It plans for recognition under the MRTU & PULP Act, 1971.

  • Will that union succeed? Why?
  • Suggest the procedure for getting recognition under the MRTU & PULP Act, 1971

Solution:

  • Yes, the Union will succeed to get recognition. Section 11 of the MRTU & PULP Act, 1971, any applicant union which has for the whole of the period of six calendar months a membership not less than 30% of the total number of employees employed in any undertaking may apply for being registered as a recognized union for such undertaking.
  • The procedure for recognition is provided under Section 12 of the MRTU & PULP Act, 1971.
  • The trade union seeking recognition must make an application in the prescribed form to the Industrial Court with necessary documents attached and prescribed fees.
  • On finding the application on a preliminary scrutiny to be in order, the Industrial Court displays a notice on the notice board of the undertaking, declaring its intention to consider the said application on the date specified in the noticeIt calls for any objections from other union.
  • If, after considering the objections, if any, that may be received and if after holding such inquiry in the matter as it deems fit, the Industrial Court recognises the trade union subject to conditions of Section 19 of the MRTU & PULP Act, 1971.

Situational Problem 04:

Niteesh and Company Ltd are manufacturing salt from seawater on the coast of Ratnagiri in Maharashtra. They have employed 30 workers to collect the salt, pack it and load it into the trucks. The inspector of factories prosecutes the director for not maintaining a register of workers as required under the factories act.

  • Can the Factories Act be applied to this company? State relevant case law.
  • Define factory under the factories Act, 1948.

Solution:

  • Yes, the Factories Act is applicable in this case, the concerned case law is Ardeshir H. Bhiwandiwala v. State of Bombay, AIR 1962 SC 29
  • According to section 2(m) “factory” means any premises including the precincts thereof-

(i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or

(ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on, – but does not include a mine subject to the operation of the Mines Act, 1952 (XXXV of 1952) or a mobile unit belonging to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place.

Situational Problem 05:

An investigating officer was refused entry into the premises of the workplace at which the investigation officer was entitled to enter by Mr. X

  • Can Mr. X be punished under the MRTU & PULP Act, 1971?
  • If so, what is a punishment that can be given to Mr. X. Support your answer with relevant provisions?

Solution:

  • Yes, Mr. X can be punished under Section 49 of the MRTU & PULP Act, 1971
  • According to Section 49 of the MRTU & PULP Act, 1971, any person who wilfully,—
  • prevents or obstructs officers, members of the office staff, or members of any union from exercising any of their rights conferred by ‘ this Act;
  • refuses entry to an Investigating Officer to any place which he is entitled to enter ;
  • fails to produce any document which he is required to produce; or
  • fails to comply with any requisition or order issued to him by or under the provisions of this Act or the rules made thereunder; shall, on conviction, be punished with fine which may extend to five hundred rupees.

Situational Problem 06:

A probationer technical workman was charge sheeted for riotous or disorderly behaviour outside the place of work

  • Was the employer required to charge sheet the said workman to conduct departmental inquiry?
  • If domestic inquiry is necessitated in the above case, is the delinquent employer entitled for copy of document submitted to Enquiry Officer but having no bearing on charges and not relied upon the examination?

Solution:

  • No, the employer is not required to charge sheet the said workman to conduct departmental inquiry because his behaviour is outside the place of work.
  • Yes, in domestic inquiry the employer is entitled for copy of document submitted to Enquiry Officer but having no bearing on charges and not relied upon the examination.

Situational Problem 07:

One person was working for cleaning and sweeping the floors of temple. He was appointed by the trust of the temple

  • Can the person claim as ‘workman’ under the IDA, 1947?
  • Is the temple ‘industry’ under the IDA, 1947?

Solution:

  • Yes, the person can claim as workman under the Industrial Disputes Act, 1947, since the relationship as workman and employer can be established between him and the trust,
  • Yes, applying Triple Test given by the honourable Supreme Court in Bangalore Water Works v. Rajappa case, a temple can be industry where systematic activities are carried on by the co-operation of the workmen and the employer, within the meaning of Section 2(j) which defines industry.

Situational Problem 08:

35 women are employed in Mythili Industries. Since only two women workers were having children below 5 yrs. of age, the manager of the industry refuses to provide creche for the children.

  • Is the refusal correct? Give reasons?
  • What are the objects of the Factories Act, 1948?

Solution:

  • No, his refusal is incorrect. Under section 48 of the factories act, every factory wherein more than 30 women workers work shall be provided with a suitable room for the use of children under age of 6 as a creche. The number of women workers having children does not matter here. He has to provide for creche as the number of women workers are 35 which is more than 30.
  • The main objectives of the Indian Factories Act, 1948 are to regulate the working conditions in factories, to regulate health, safety welfare, and annual leave and enact special provision in respect of young persons, women and children who work in the factories.

Situational Problem 09:

A recognized trade union resorts to strike

  • When can a recognized trade union resort to strike under the MRTU & PULP Act, 1971?
  • What happens if strike is commenced one day before the date when strike could commence? Will it affect the recognition of the trade union?

Solution:

  • If the strike is in consequence of the industrial dispute, the recognized trade union can resort to strike after giving employer a notice of 14 days in the prescribed form ‘I’ and also after obtaining vote of majority of the members of union in favour of strike before the notice of strike is given.
  • In such case, the strike would become illegal and if illegal strike continues further ,in consequence, the Industrial Court can cancel recognition of a trade union after giving show cause notice.

Situational Problem 10:

Employee is pursuing his fellow employee to join an unrecognized trade union. When employer learned it, he transferred him under management [policy.

  • Is any way unfair labour practice under the MRTU & PULP Act, 1971?
  • What action employee can take under the MRTU & PULP Act, 1971?

Solution:

  • Yes, under Schedule II of the MRTU & PULP Act, 1971, if the employer interferes with, restrain or coerce employees in the exercise of their right to organize, form, join or assist a trade union and to engage in connected activities by threatening an employee with discharge or dismissal, if he joins a union, it amounts to an unfair labour practice on the part of employer.
  • Under Section 28(1) of the MRTU & PULP Act, 1971, an employer may, within 90 days of the occurrence of such unfair labour practice. File a complaint before the Court competent to deal with such complaint either under Section 5, or under Section 7, as the case may be of the Act.

Situational Problem 11:

An award passed by the Tribunal giving higher pay scale to workmen. The employer terminates the award after one year. The employer, after termination of the award makes payment of wages at the scale prevalent prior to passing of award.

  • Whether the action of the employer of reducing wages is legal?
  • How long the award remains in operation?

Solution:

  • No, the employer is not entitled to stop the increment granted under the award given by the Industrial Tribunal after the termination of award. The employer is not within his right to terminate the award unilaterally. Workman can recover the deficit of wages from the employer by referring to the Industrial Tribunal.
  • An award remains in operation for a period of one year from the date on which it came into operation.

Situational Problem 12:

A union has got 38% membership of total workmen employed in the establishment and is applied for grant of recognition. Another union objects on the ground that it has got 48% membership of the total workmen in that establishment.

  • To which authority the application for grant of recognition of trade union has to be made?
  • Give any two duties of recognized union.

Solution:

  • Yes, the Union will succeed to get recognition. Section 11 of the MRTU & PULP Act, 1971, any applicant union which has for the whole of the period of six calendar months a membership not less than 30% of the total number of employees employed in any undertaking may apply for being registered as a recognized union for such undertaking.
  • The Duties of recognized trade unions are (a) the membership subscription shall be not less than fifty paise per month; (b) the Executive Committee shall meet at intervals of not more than three months; (c) all resolutions passed, whether by the Executive Committee or the general body of the union, shall be recorded in a minute book kept for the purpose; (d) an auditor appointed by the State Government may audit its account at least once in each financial year.

Situational Problem 13:

The university of M is engaged in imparting education to large number of students. Madan, a clerk was employed in the printing press of the University for the past three years. The University struck of the name of Madan from the muster rolls, and asked Madan not to attend duties any more.

  • Whether the University is an industry?
  • The action of the University amounts to what, and whether it is legal?

Solution:

  • Yes, applying Triple Test given by the honourable Supreme Court in Bangalore Water Works v. Rajappa case, University can be industry where systematic activities are carried on by the co-operation of the workmen and the employer, within the meaning of Section 2(j) which defines industry.
  • The action by the University amounts to retrenchment. The action is illegal because condition precedent to retrenchment are not complied by the University.

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